Budget & Taxes (Business Taxes)

introduced · Montana · Legislature Jan 23, 2025

LC 3243: Provide tax credit to landlords that rent for below market rate

This bill creates a Montana income tax credit for landlords who rent residential properties at rates below the local fair market value. Landlords can claim $2 for every $100 their rent is under 110% of the county's fair market rent, with a maximum credit limited to their annual tax liability. To qualify, properties must have lease terms of at least one year, meet federal housing quality standards, and not already participate in other rent-limiting programs. The credit can be carried forward for up to three years if not fully used, and the bill requires landlords to submit proof of rent amounts and lease agreements when claiming the benefit.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax credits to landlords for below-market rent, promoting affordable housing and fiscal incentives for community benefit.85% confidence ✓ HousingSupports HousingBill provides tax credits to landlords for below-market rent, directly increasing affordable housing availability and protecting tenant access to affordable units.90% confidence

Sub-Topics Business Taxes Income Tax Tax Credits Affordable Housing Landlords Tenant Rights

Track

introduced · Montana · Legislature Jan 24, 2025

LC 137: Modify tax classification of shooting ranges

This bill reclassifies shooting ranges as Class Four commercial property for Montana state tax purposes, directly affecting shooting range operators and their property assessments. The legislation amends existing tax law to include shooting ranges operated by nonprofit organizations in the commercial property category, which is then taxed at half the standard commercial property tax rate. This change applies to tax years beginning after December 31, 2025, and modifies the Montana Code Annotated to formalize this classification within the state's property tax system.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill reduces tax burden on shooting ranges by lowering their property tax rate, promoting fiscal relief for business operators and potentially increasing local revenue through economic activity.85% confidence

Sub-Topics Business Taxes

Track

introduced · Montana · Legislature Jan 13, 2025

LC 3553: Provide for increase in total MEDIA act film tax credits

This bill increases the annual limit on Montana film production tax credits from $12 million to $350 million, allowing more movie and TV projects to qualify for state tax incentives. The change directly affects film production companies and other businesses seeking tax credits under the Montana Economic Development Industry Advancement Act. The bill also maintains a first-come, first-served allocation system and requires state departments to publicly post available credit amounts online. If a project misses the annual limit, it can apply for credits in the following year without extending the standard carry-forward period for unused credits. The legislation takes effect immediately upon passage and applies to income tax years beginning after December 31, 2024.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill increases film production tax credits to attract businesses and investment, promoting economic development through state tax incentives.85% confidence

Sub-Topics Business Taxes Income Tax

Track

introduced · Montana · Legislature Jan 8, 2025

LC 6: Revise class four residential and commercial property taxes

This bill revises Montana's property tax rates for Class Four residential and commercial properties, directly affecting homeowners, landlords, and business owners. It establishes a graduated tax rate for residential properties, exempting the first $50,000 of market value and applying higher rates to values above $1.5 million, while also creating an exemption for the first $200,000 of commercial and industrial property value. The legislation includes specific provisions for vacant residential lots, rental multifamily units, and mixed-use properties, with tax rates generally set at 1.35% for residential properties and 1.89% for commercial properties, subject to certain exemptions and multipliers. The bill takes effect immediately upon passage and applies retroactively to tax years beginning after December 31, 2024.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill revises property tax rates with exemptions for lower values, promoting fiscal responsibility and providing tax relief for homeowners and businesses.85% confidence

Sub-Topics Business Taxes Property Tax

Track

introduced · Montana · Legislature Feb 6, 2025

LC 462: Provide tax credits for children and child care

This Montana bill establishes three tax credits to support families and child-care workers: a $1,200 child tax credit for parents of children age 5 or younger, a $1,600 credit for child-care workers who work at least 20 hours per week for six months, and a $5,000 maximum credit for employers who provide dependent care assistance to employees. The child tax credit is available to residents with earned income and limited investment income, while the worker credit applies to those employed in licensed day-care centers, family homes, or early childhood programs. All three credits are refundable and will be adjusted annually for inflation, with the department authorized to create rules for administering the program.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill establishes tax credits to support families and child-care workers, providing tax relief and funding essential family services.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill provides tax credits for child-care workers and employers offering dependent care assistance, expanding worker benefits and supporting employment in child-care sector85% confidence

Sub-Topics Business Taxes Income Tax Tax Credits

Track

introduced · Montana · Legislature Jan 27, 2025

LC 129: Provide income tax credit for renters

This bill creates a new Montana income tax credit for renters with household incomes under $45,000 who pay rent-equivalent property taxes. The credit equals the lesser of the amount by which rent-equivalent taxes exceed 4% of gross income or $500, with reduced credit amounts for those earning between $35,000 and $45,000. Renters cannot claim this credit if they also qualify for the elderly residential property tax credit, and any unused credit amount is refunded to the claimant. The legislation also adds the renter's tax credit to a list of tax credits that must be reviewed by the revenue interim committee every eight years starting in 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides income tax credit for low-income renters, offering tax relief and financial support to households under $45,000.90% confidence ✓ HousingSupports HousingBill creates income tax credit for low-income renters, directly supporting affordable housing by reducing financial burden on tenants.90% confidence

Sub-Topics Business Taxes Income Tax Tax Credits Landlords Renters Tenant Rights

Track

introduced · Montana · Legislature Feb 12, 2025

LC 3575: Constitutional amendment for sales tax to fund K-12 education

This bill proposes amending the Montana Constitution to allow a statewide 4% sales and use tax specifically to reduce property taxes for K-12 education. If approved by voters, the amendment would require the legislature to dedicate the revenue from this tax to lowering property taxes for school funding, unless a three-fourths vote in both legislative chambers decides otherwise. The measure would take effect on July 1, 2027, and requires a two-thirds legislative vote to pass before appearing on the November 2026 ballot for public approval.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates new sales tax revenue specifically to fund K-12 education and reduce property taxes, directly advancing state budget and taxation goals for public services.95% confidence ✓ EducationSupports EducationBill proposes new sales tax revenue specifically to fund K-12 education and reduce property taxes for schools, directly increasing educational funding.95% confidence

Sub-Topics Business Taxes Sales Tax School Funding

Track

introduced · Montana · Legislature Feb 17, 2025

LC 3073: Eliminate state income taxes on veterans retirement

This bill would exempt military pensions, retirement benefits, and survivor benefits from Montana state income tax. It directly affects veterans and their families who receive these benefits and currently pay state income tax on them. The legislation amends existing state tax code sections to establish this exemption and repeals a previous 2023 provision that may have affected this area. The bill also includes updated definitions for various tax terms to ensure clarity in how the exemption is applied.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief to veterans by exempting their retirement benefits from state income tax, directly supporting fiscal relief for a specific group.90% confidence ✓ VeteransSupports VeteransBill exempts veteran retirement benefits from state income tax, directly protecting and strengthening financial benefits for veterans and their families.95% confidence

Sub-Topics Business Taxes Income Tax Veteran Benefits

Track

introduced · Montana · Legislature Jan 8, 2025

LC 1649: Provide for digital advertising tax

This bill introduces a 10% tax on digital advertising services in Montana, targeting companies with at least $25 million in worldwide annual revenue from such services. The tax is calculated based on the portion of a company's digital advertising revenue generated within the state, using an apportionment formula that compares state revenue to total U.S. revenue. Affected businesses must file annual tax returns by April 15, pay estimated taxes quarterly if expected state revenue exceeds $1 million, and keep records for five years for potential audits. The bill also grants the state department authority to create administrative rules for implementation and includes provisions for penalties related to false reporting.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill introduces new digital advertising tax to increase state revenue for public services and fiscal management90% confidence ✗ TechnologyOpposes TechnologyBill imposes 10% tax on digital advertising services, increasing operational costs for tech companies and potentially limiting digital advertising innovation and consumer access.75% confidence

Sub-Topics Business Taxes Revenue

Track

died · Montana · Legislature Jan 15, 2025

LC 1860: Provide income tax relief for property taxes paid

This bill creates a new Montana tax credit for renters under 62 with household income below $45,000 who pay rent-equivalent property taxes, allowing them to claim up to $1,200 or $1,750 depending on their rent-to-income ratio. It also permits qualifying teachers to exclude certain earned income when calculating their eligibility for this credit. The legislation increases the residential property tax credit for elderly taxpayers and adjusts the income thresholds where these credits begin to phase out. Additionally, the bill schedules periodic reviews of various state tax credits starting in 2025 to assess their effectiveness and impact on taxpayers.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides income tax relief for renters and elderly taxpayers, directly addressing tax policy to reduce financial burden on specific groups.90% confidence ✓ EducationSupports EducationBill allows qualifying teachers to exclude certain earned income for tax credit eligibility, providing financial relief to educators.70% confidence ✓ HousingSupports HousingBill provides tax credits for renters and elderly property owners, directly supporting affordable housing and tenant financial relief.85% confidence

Sub-Topics Business Taxes Property Tax Tax Credits Landlords Property Taxes Renters

Track